A Touch Cheaper, Following Broader Core FI

JGB have followed the broader impetus during the Tokyo morning, with futures operating off of worst levels, last -7 on the day after drifting lower alongside the broader core FI space. The major cash JGB benchmarks are little changed to ~0.5bp cheaper on the day, with nothing in the way of overt concession observed ahead of this afternoon’s 10-Year JGB auction.

• •In local news, Japan's vice finance minister for international affairs noted that a weak JPY presents both positives and negatives when it comes to the economy, as it alters export & import patterns. In the wake of the comments, RTRS noted that “Kanda's remarks underscore how a weak yen is becoming a tricky political issue for Japan's finance ministry, which has historically focused on preventing a strong currency from hurting the country's export sector.”